Key facts for StarMine Equity Risk Premium Model
Coverage metric
Geography:
North America, Asia / Pacific, EMEA, Latin America and the Caribbean
History:
From 2015
Coverage count:
Asset Classes - 195 Indices
Asset Class
Ordinary Shares, Equities
Delivery metadata
Data Frequency
Continuous
Language
English
Delivery methods:
Excel, Deployed/Onsite Servers, API, Web Service, Cloud, Desktop, FTP, Bulk, RSS Feed, Website
Data formats:
PDF, GZIP, XML, JSON, CSV, Text, Python, HTML, Bitmap, MPEG, User Interface, PCAP
Minimum service frequency
Continuous
Overview of StarMine Equity Risk Premium Model
BUILT FOR ASSET ALLOCATION
Fundamental Return Framework
- Combines earnings yield, growth and inflation forecasts.
- Uses SmartEstimate earnings data as a core input.
- Incorporates GDP growth and risk-free rate assumptions.
- Provides full transparency into model drivers.
ASSESS MARKET ATTRACTIVENESS
Better Market Expectations
- Helps assess relative market attractiveness globally.
- Supports asset allocation and capital market assumptions.
- Enhances cost of capital and valuation analysis.
- Provides insight into expected long-term market returns.
EXPECTED EQUITY MARKET RETURNS
Expected Market Return Model
- Calculates long-term expected equity market returns.
- Covers developed and emerging markets globally.
- Provides market-level return and risk premium estimates.
- Supports investment planning and forecasting.
Description of the dataset
- LSEG delivers the StarMine Equity Risk Premium Model to estimate long-term equity market returns and excess returns above risk-free rates. Our coverage spans 66 global equity markets, supporting asset allocation, cost of capital and strategic investment workflows.
- We use a valuation-based framework that combines aggregate earnings yield, implied dividend payout ratios, and long-term inflation and GDP growth forecasts. LSEG provides a transparent approach for deriving market-level equity risk premium estimates.
- Our ERP outputs serve as critical inputs to StarMine Weighted Average Cost of Capital analytics and can also support broader cost of capital, pension return and capital market assumption models. We help clients align return expectations with consistent market fundamentals.
- Within LSEG workflows, we expose the model inputs that drive the ERP calculation and support sensitivity analysis around key assumptions. We enable professionals to compare the StarMine view with their own estimates in a structured analytical environment.
Accessing the dataset
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